1. Channel Incentives Update LAR Incentives session:ap093
11/24/2018 8:38 AM
Channel Incentives Update LAR Incentives session:ap093
Lisa Slim
Microsoft Alliance Business Manager
Hewlett-Packard
MPN partner since 1989
HP Enterprise Business
David Kinch
Channel Incentives Manager
Microsoft Corporation
Ro Kolakowski
Company Partner
6th Street Consulting
MPN partner since 2006
SharePoint
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

2. Agenda
Background
Opportunity
Next Steps

3. Historical Perspective
Distribution
Volume Licensing
Online Services & Solutions
In the beginning, Microsoft distributed software in pallets, and the job of distribution was to break out these pallets.
In the 1990’s Microsoft developed a Volume Licensing program and created an ecosystem of transaction partners to support the selling of software through customer contracts. Over the past 10 years in particular, Microsoft has also made big investments a sales force primarily focused in the large Enterprise customer area.
Technology continues to evolve, and the cloud provides a compelling value proposition to customers. As Microsoft starts investing into on winning more on-premise and cloud solution offerings, partners will continue to jointly engage with customers. You’ll see this is a high area of focus this week.
As partner roles in customer engagements evolve, so will the activities they’re expected to perform for customers, as well as the associated incentives.
Windows
OEM / FPP
No direct sales
Retail partners
Windows / Office / Servers
Software Assurance Enterprise Agreements / Select / Open
Sales force enabled
Transactional partners
Solutions / Online Services
New Licensing Offerings
Multiple go-to-market models
Partners grow solutions and online
1975
1990s, 2000s
2007+

4. Microsoft Incentives Strategy
Selling Solutions
Partner Marketing
Create Demand
Sell
Plan
Enable
Services
Retain
Customers
Channel Activation
Re-selling
Proof of Concepts and Pilots
Desktop Deployment Planning Services and Accelerate
Speaking of activities…. there are two core principles of the Microsoft Incentives strategy:
First, incentives reward partners for performing activities.
Second, incentives reward partners for investing in areas of growth and customer value.
To the extent that we can define specific customer engagement activities, and define specific solutions and workloads, we can be very precise in the way we invest in incentives.
Technical Support
Software Asset Management 1
Incentives addressing partner activities throughout the entire sales lifecycle 2
Structuring incentives to evolve with market needs and advancing technologies

5. The Opportunity for Partners Budget Grows with Revenue
Corporate Accounts
Growing from 30% to 80% EA Penetration
Major Accounts
Drive for Operational Efficiency and quality in serving customer licensing needs
Providing customers with value-added Software Asset Management Activities
SAM Services
Online Services
Driving Online Services Growth and Deployment
One of the most important points to be made here is that incentives is one of the few areas, if not the only area, where our investment grows with revenue.
We’re urging our sales teams to be aggressive in their promotion of these incentives, and we know you will include this broad array of incentives in your business plans with your Partner Account Managers.
For Online:
IDC says that the private cloud market will reach $26B by If you look at what 1% of that market share means to partners in incentives alone, that would translate into $78M in incentives.
IDC also predicts the public cloud market will reach $70B by % of that market share
Private, by ,000,000, ,000,000 @ 30% M
Public, by ,000,000, ,000,000 @ 15% M (Mix of Azure, Online Advisor, EA Deployment)
Selling solutions - Lync, Application Platform, Management and Virtualization, and Windows 7
Solutions
Small and Medium Business
Top-Line Growth through funding of Marketing Activities
Our 5 year aspiration is to spend $XB on incentives

6. Enterprise Incentives
Corporate Accounts Incentives
Major Accounts Incentives
SAM Services Incentives
Rewarding partners for selling new EAs, renewing existing Enterprise Agreements, and selling specific Solution areas rewarded through Accelerators
Drive for Operational Efficiency and quality in serving customer licensing needs
Rewarding partners for SAM Services engagements with customers
Corporate Accounts Core Elements
Sell
Transact
Manage
Deploy
Credit and Collections
Major Accounts Incentives
SELL
TRANSACT
Help Desk
Contract Management
Credit & Collections
True-Up Service
Software Assurance Benefit (SAB) Consumption, per unit consumed:
Packaged Services
Training Vouchers
Select Plus
MANAGE
DEPLOY
SAM Service Incentives
SAM Baseline
SAM Assessment
SAM Deployment Planning
Corporate Accounts Accelerators Global Base
Renewal Q2
Oct 3 – Dec 30, 2011
Renewal Q3, Q4
Jan 2- June 30, 2012
True-Up
CA/SA Agreements,
EES sold through LAR
Corporate Accounts:
Sell incentives reward new EA
On-Time Renewal incentives – Double bonus in Oct – Dec
On-Time True-Up
CA/SA Agreement Accelerators
Local Accelerators will vary
Apply to Commercial and Public Sector – Anne W really wants this in here!
Corporate Accounts Local Accelerators

7. Great Opportunities announcement NEW RENEWAL Oct 2011 Dec 2010
Jan 2012
July 2012
Partners earn Sell fees without CA EA Deal Registration
Partners earn Sell fees with CA EA Deal Registration
NEW
CA EA Deal Registration Opens
So – what does this all net-out to? Should you focus on new or renewal revenue? Of course, the answer is both.
From a purely practical perspective, you want to
Sell and close EA’s in the first two months of CA Launch, October to December, to earn those rich sell fees on all the new EA you transact in Corporate Accounts
Ensure all of your end-of-Q1 renewals are on-time for September 30, to earn bonuses across both Corporate and Major accounts,
Renew on-time in Q1 to earn double the On-Time Renewal Accelerators in Corporate Accounts
Partners earn normal On-Time Renewal Accelerator in CA
Partners earn DOUBLE On-Time Renewal Accelerator in CA
RENEWAL
Sept 30 On-Time Renewal Bonus across all CA & Major

8. Operational Excellence Bonus
10% on CA Transact, Major Account Help Desk and Contract Management fees
Reward highest levels of operational performance - Top 5% of Ops performance
Based on:
Valid Agreements
Help Desk Activity Log (Major)
Microsoft Partner Receivables
Order Accuracy
With Corporate Accounts and Major Accounts incentives, we will be evaluating partner performance based on a list of criteria.
We’ll be able to identify our very best and worst performing partners.
Partners that end up at the bottom of the bell curve will have an Operational Performance review
Partners at the other end of the spectrum will receive a large, 10% bonus on incentives around CA Transact, Help Desk in Major Accounts, and Contract Management fees.
Operational Performance Review
Operational Excellence Bonus

9. Solution Incentives Management & Virtualization Windows 7 Lync
INCREASED
NEW RATES
GLOBAL
NEW!
Management & Virtualization
Suites Example: ECI
30%
Virtualization
20%
Management 5%
Identity and Security
Windows 7
Rates after Oct 1, 2011
Windows 7 Enterprise + MDOP
10% 7%
MDOP 3%
App Plat/SQL
Enterprise
20%
Standard
10%
Lync
Enterprise
20%
Standard
10%
Solution incentives allow us to reward partners for early investments in areas of growth. We have four Solution Incentives in market in FY12.
For Management and Virtualization, we’re paying up to 30% incentives, which is new.
For Windows 7, after October 1, we’ll be paying on a percentage-of-revenue basis to make it more consistent with the other incentives. Until then, the existing rates will apply.
For App Plat/ SQL, we’re taking this pilot program which ran in a few countries, to global.
We are also launching the new Lync incentives.
Some of the most interesting facts about our incentives in FY12 is that we are broadening the number of solutions we incent, paying more in some cases, and going from 7 eligible Microsoft Partner Network Gold competencies to 13. This results in 66% of current MPN Gold competency partners eligible for Solution incentives!

10. Online Services Incentives
Online Advisor
Windows Intune, Office 365 Year 1
12%
All Years 6%
EA Deployment of Online Services Incentives
Windows Intune Deployment (New, Add-On) New WC EA
50%
Windows Intune Deployment
(New, Add-On) on Existing WC EA
12%
Office 365 Deployment
Windows Azure Incentives
Windows Azure
25%
In addition to those Solution Incentives, there are three Online Services incentives broadly available to partners that are supporting customers in moving from on-premise to the cloud. They include:
Online Advisor – paying 12% in year one, earned up front starting this year (paid quarterly or monthly depending on partner volume)
EA Deployment- deployment defined as an assigned seat of Office 365, or Windows Intune defined as downloaded agents on individual devices – up to 50%!
Windows Azure incentives pays on Windows Azure revenue at 25%

11. Managed Reseller Incentives
SMB Incentives
Introducing CoOp for
Managed Resellers Worldwide
Managed Reseller Incentives
Open VL
Global Incentives
Core
Growth & Incubation
Subsidiary Selection
OVS Growth
Local Accelerators
Anti-Piracy
Partner Readiness
Renewals
There is a lot of opportunity as well in selling Open to our customers, and this year we will be introducing Co-Op worldwide.
Public Sector
Market Development
Demand Generation

12. Summary
Selling Solutions
Partner Marketing
Create Demand
Sell
Plan
Enable
Services
Retain
Customers
Channel Activation
Re-selling
Proof of Concepts and Pilots
Desktop Deployment Planning Services and Accelerate
To recap, we have clarified what our Incentives strategy is composed of – activities we incent, in areas of growth
Technical Support
Software Asset Management 1
Incentives addressing partner activities throughout the entire sales lifecycle 2
Structuring incentives to evolve with market needs and advancing technologies

13. Channel Incentives Roadmap
Corporate Accounts
WPC 2010
Sept 2010
WPC 2011
Oct 2011
Announcement of new incentives for 2011, and Solutions Incentives
Incentives Guides Provided through PAMs
Incentive Guides
Accelerator Rates Launch
Launch
Solutions
Major Accounts
Online Services
SAM Services
Managed Reseller
The ESA and LAR Rebate transition has been underway now since last year. Thanks to all of you for your support throughout the year. Partner feedback and participation has been critical to this date, and is still being used as we transition to incentives implementation in the fall.
Starting today, we are launching Solutions Incentives, Online Services, and the FY12 Managed Reseller program and associated incentives.
October will be a time that we launch Corporate Accounts, Major Accounts, and SAM Services, while we continue paying ESA fees on contracts signed prior to October 1, as well as some LAR Rebates depending upon the region.
Grandfather ESA
Sunset LAR Rebates
Partner and Field Feedback
Internal Governance

14. Next Steps for Partners
Corporate Accounts
Understand the local CA Opportunity and prepare for EA Deal
Registration and T-36 activities and operational excellence
Major Accounts
Drive for Operational Efficiency and quality in serving customer licensing needs
Earn Microsoft Partner Network Gold Competency in SAM, to grow SAM prospects and business
SAM Services
Drive purchasing and deployment of Office 365, Intune, and CRM Online on the EA to grow revenue and earn incentives
Online Services
Next step for partners…
Earn Microsoft Partner Network Gold Competencies and
build solution practices
Solutions
Small and Medium Business
Grow Open revenue and develop marketing plans to take advantage of Co-Op funds

15. 11/24/2018 8:38 AM
© 2011 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.
© 2009 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.